{"data":{"id":"us-ky/krs-198a.080","jurisdiction":"us-ky","citation":"KRS 198A.080","heading":"Housing development fund -- Use to include repair of existing housing.","body":"(1) There is hereby created and established a loan fund to be known as the housing\ndevelopment fund and to be administered by the corporation as a trust fund separate\nand distinct from all other moneys, funds, or assets administered by the corporation.\n(2) The housing development fund shall be comprised of and the corporation is hereby\nauthorized to receive and accept for the housing development fund the proceeds of\ngrants, contributions, appropriations, repayment of loans made from the fund, the\nproceeds of fund notes, and any other moneys which may be made available to the\ncorporation for the purposes of the housing development fund from any other\nsource. The corporation is hereby authorized to receive and accept from any source\nwhatever any grants or contrib utions for the housing development fund. The\ncorporation is authorized to provide for the issuance, at one (1) time or from time to\ntime, of housing development fund notes for the purpose of providing funds for\nsuch fund; provided, however, that not more t han $5,000,000 fund notes or other\nborrowings shall be outstanding at any one (1) time. The principal of and the\ninterest on any such fund notes shall be payable solely from the housing\ndevelopment fund. The fund notes of each issue shall be dated, shall m ature at such\ntime or times not exceeding ten (10) years from their date or dates, and may be\nmade redeemable before maturity, at the option of the corporation, at such price or\nprices and under such terms and conditions as may be determined by the\ncorporation. The corporation shall determine the form and manner of execution of\nthe fund notes, including any interest coupons to be attached thereto, and shall fix\nthe denomination or denominations and the place or places of payment of principal\nand interest, which may be any bank or trust company within or without the state or\nany agent, including the lender. In case any officer whose signature or a facsimile of\nwhose signature shall appear on any fund notes or coupons attached thereto shall\ncease to be such officer before the delivery thereof, such signature or such facsimile\nshall nevertheless be valid and sufficient for all purposes the same as if he had\nremained in office until such delivery. The fund notes may be issued in coupon or in\nregistered form, or b oth, as the corporation may determine, and provision may be\nmade for the registration of any coupon fund notes as to principal alone and also as\nto both principal and interest, and for the reconversion into coupon fund notes of\nany fund notes registered as to both principal and interest, and for the interchange of\nregistered and coupon fund notes. Any such fund notes shall bear interest at such\nrate or rates as may be determined by the corporation and may be sold in such\nmanner, either at public or private sale, and for such price as the corporation shall\ndetermine to be for the best interest of the corporation and best effectuate the\npurposes of this chapter.\n(3) The proceeds of any fund notes shall be used solely for the purposes for which\nissued and shall be disbursed in such manner and under such restrictions, if any, as\nthe corporation may provide in the resolution authorizing the issuance of such fund\nnotes. The corporation may provide for the replacement of any fund notes which\nshall become mutilated or shall be destroyed or lost.\n(4) Fund notes may be issued under the provisions of this section without obtaining the\nconsent of any department, division, commission, board, body, bureau, or agency of\nthe state, and without any other proceedings or the hap pening of any conditions or\nthings other than those proceedings, conditions, or things which are specifically\nrequired by this chapter and the provisions of the resolution authorizing the issuance\nof such fund notes.\n(5) The purpose of the housing development fund is to provide a source from which the\ncorporation may make loans and grants, and the corporation is authorized to make\nloans and grants from the housing development fund, at such interest rate or rates\nand such term or terms as may be determined b y the corporation to be for the best\ninterest of the corporation and best effectuate the purpose of this chapter, and with\nsuch security for repayment as the corporation deems reasonably necessary and\npracticable, to:\n(a) Defray development costs of sponso rs, builders, and developers of residential\nhousing, or\n(b) Provide to persons and families of lower and moderate income who are\napplying for mortgages, either for purchase or rehabilitation of residential\nhousing the amounts required to make down payments , pay closing costs, or\nmake interest payments, or\n(c) Make or participate in the making of construction loans which are not\nfederally insured to sponsors, builders, and developers of land development or\nresidential housing; provided, however, that such lo ans shall be made only\nupon the determination by the corporation that construction loans are not\notherwise available, wholly or in part, from private lenders upon reasonably\nequivalent terms and conditions.\n(6) No temporary loans shall be made by the corporation from the housing development\nfund except in accordance with a written agreement which shall include, without\nlimitation, the following terms and conditions:\n(a) The proceeds of such loan shall be used only for the purpose for which such\nloan shall have been made as provided in the agreement;\n(b) Such loan shall be repaid in full as provided in the agreement;\n(c) All repayments in connection with a loan to defray development costs shall be\nmade concurrent with receipt by the borrower of the proceeds o f a\nconstruction loan or mortgage loan, as the case may be, or at such other times\nas the corporation deems reasonably necessary or practicable; and\n(d) Such security for repayment shall be specified and shall be upon such terms\nand conditions as the corporation deems reasonably necessary or practicable to\ninsure all repayments.\n(7) No funds from the housing development fund shall be used to carry on propaganda\nor otherwise attempt to influence legislation.\n(8) (a) Notwithstanding other provisions of this section, the corporation may make\nloans secured by a mortgage from the housing development fund to enable a\nperson sixty-two (62) years of age or older who owns the home in which he\nresides, whose income combined wi th his spouse does not exceed  six\nthousand dollars ($6,000), and who meets any other reasonable standards\nestablished by the corporation to make repairs to his home including but not\nlimited to siding, weatherstripping, roofing, gutters, electrical wiring ,\nplumbing, and installation of sewers.\n(b) The maximum principal amount of such loans shall not exceed seven\nthousand dollars ($7,000) and the maximum interest rate shall not exceed\nthree percent (3%).  All loans shall be repayable over a period of thirty  (30)\nyears.  Upon the death of the borrowers prior to maturity, the unpaid balance\nshall be paid in full by the person to whom the house has passed by devise or\ndescent.\n(c) The corporation shall make loans under this section in an equal number in\neach of the six (6) congressional districts.","path":["KRS Chapter 198A"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=6935","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:50Z","sha256":"f378175e8f555f80731434547b5079d8bd2ff2385e2bf89a50a6267f695c2f2a","source_id":"us-ky","stale":false,"prev":"us-ky/krs-198a.070","next":"us-ky/krs-198a.090"},"notice":"GroundRules: Original legal text. Not legal advice."}